Best Buy founder Schulze remains committed to takeover
Minneapolis — Best Buy Co. co-founder Richard Schulze said Thursday that he is staying the course on his plan to acquire the company and take it private, adding that he has heard from a lineup of private equity firms prepared to make "significant commitments."
In a letter to the Best Buy board, Schulze indicated that he’d like to create a group and put forth a fully financed plan.
He said that Credit Suisse "is highly confident it can arrange the necessary debt financing," and that Credit Suisse has been contacted by "a number of major banks" that are interested in participating in the debt financing.
Schulze said he’s willing to roll over at least $1 billion of his own equity into the deal and would consider putting up potentially his entire existing stake depending on terms the private equity firms want for the new ownership structure.
Schulze already owns 20.1% of the company’s stock, so buying the rest of shares would mean coming up with about $6.9 billion.
Limited Brands profit plummets in Q2, raises guidance
Columbus, Ohio — Limited Brands reported Wednesday that net income in the second quarter dropped 38% to $143.6 million, from $231.2 million in the year-ago period.
The owner of Victoria’s Secret, Bath & Body Works and La Senza saw revenue slip 2% in the quarter to $2.4 billion, meeting Wall Street expectations. Same-store sales grew 8%.
The company also raised its earnings guidance for the year, although it expects a weak third quarter.
Dollar Tree Q2 profit surges 26%
Chesapeake, Va. — Dollar Tree Inc. reported Thursday that profit for the quarter ended July 28 soared 26% to $119.2 million, compared with $94.9 million in the year-ago period.
Sales rose 10.5% to $1.7 billion, just missing Wall Street’s expected $1.71 billion. Same-store sales grew 4.5%.
However, the company’s outlook fell short of Wall Street expectations, saying that it expects revenue between $1.71 billion and $1.75 billion in the third quarter while Wall Street expects $1.77 billion.